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last year company profit is Rs 50.000 ,the part of the
profit is transfer to reserve and surplus account . but
the current year company suffering loss .in that situation
company can take help Rs 25000 from reserve and surplus
. if yes than how can ,please reply me what is general entry

Question Posted / tanveer ahmed

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last year company profit is Rs 50.000 ,the part of the profit is transfer to reserve and surplus ..

Answer / surbhi bhandari

reserve & surplus a/c debit to profit & loss a/c

Is This Answer Correct ?    15 Yes 0 No

last year company profit is Rs 50.000 ,the part of the profit is transfer to reserve and surplus ..

Answer / ravi

yes reserves & surplus amount which is kept as a reserve for last year can be utilized in this year

journal entry
reserves&surplus a/c dr 25000
TO P&LA/C 25000

Remaining 25000 can be utilized to set off future occuring
losses

Is This Answer Correct ?    8 Yes 0 No

last year company profit is Rs 50.000 ,the part of the profit is transfer to reserve and surplus ..

Answer / tapan

when we transferred the profit in Reserve & Surplus Entry is

Reserve & Surplus A/c Dr
To Profit & Loss Account

Now Loss Occur so just reverse Entry

Profit & Loss A/C Dr
To Reserve & Surplus

Is This Answer Correct ?    3 Yes 3 No

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